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What Happens When My Employer Isn’t Paying Me on Time?

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Posted by Legal Team On September 29, 2024

We work to get paid so we can pay our own bills and survive. Many Californians rely on timely pay to keep their lives running, and when that doesn’t happen, it can significantly impact their lives. 

Payment Requirements

The California Department of Industrial Relations defines timely payment regulations in accordance with Labor Code section 204. Wages should be paid twice a month on days designated in advance as regular paydays. Work completed between the 1st and 15th should be paid out between the 16th and 26th of that month. Work performed from the 16th to the last day of the month should be paid between the 1st and 10th of the following month. 

Payment outside these parameters may be designated as late and subject to a penalty. These deadlines may vary depending on pay schedules and types, such as final wages, irregular overtime, or employers who pay their staff weekly. In the event of a payment that is not complete, the difference between the amount owed and what is paid may result in a penalty.  This applies to the flat $100 or $200 and 25% of the missing amount. The penalties will vary depending on the number of violations the employer has established, the amount withheld, and willful intent. 

Penalties For Late Payment

An initial violation of payment is $100 for each incident of failing to pay each employee. According to Section 210 of the California Labor Code, subsequent violations or any willful violation result in a penalty of $200 per instance per employee and 25% of the withheld wages. The increased penalty for willful violation requires evidence of the intentional failure to perform the required act. 

The employee may recover the statutory penalty under section 98, or the Labor Commissioner can collect it as a civil penalty by issuing a citation. Changes in recent years allow the employee to recover the entire penalty through a wage claim process with the labor commissioner.

Rectifying Late Payment 

If you have not received the full payment from your employer, you have several options for how to proceed, but you may be advised to notify the employer of the error and attempt to work it out internally first. However, if this becomes a reoccurring problem or takes too long to correct, it may be appropriate to take further action. 

At this point, you may benefit from speaking with a San Francisco employment law attorney to determine the best strategy forward. This may include reports to the Department of Labor or, depending on the situation, a lawsuit to recover the withheld wages and additional damages. Regardless of how you choose to move forward, keeping documentation of your attempts to rectify the problem internally may be necessary. This may include e-mails, hours worked, or pay stubs.

Taking Legal Action: Talking to an Attorney

If you have been the victim of late pay from your employer, you have recourse. Talking to a California-based attorney, like a San Francisco overtime, wage, and hour attorney will give you the proper guidance to help you seek the wages you are owed in a timely manner. 

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